📺 ROLLUP: Bitfinex Hack | Super Crypto Bowl | Aave Social Network | Vitalik Supports Assange DAO11

it's hard to be bearish eat above 3k in my opinion congrats the three-week bear market is oh i'm not excited it didn't say it can't say it it's over this weekend next week we'll see what next week rings all right guys it is the second week of february david what time is it it's the friday bankless weekly roll-up time ryan and this one is going to be a doozy uh this one is going to be like two hours long so

uh and i don't even know where to start so many things happened in like every single different sector we got bitcoin stuff to talk about we got exchange hacks to talk about we have social dynamics to talk about we had like the amount of nft things that are happening is absolutely insane oh my god where to even start well we could start with uh the world's worst crypto bank robbers that happened this week okay there was an fbi bus a hilarious story all right this should be circulating on late night it's that funny so we're gonna talk about that 3.6 billion dollar heist and

it caught up with them heisted by insane people by lunatics lunatic stay tuned to the roll up just for that story it's worth it also apple uh tap you can now pay via crypto adoption uh blackrock is getting into crypto as well the world's largest asset manager i believe they're finally coming to crypto gucci buying some land where in the metaverse and the crypto super bowl that's why i'm calling it david cause i think we're gonna be inundated by crypto

super bowl commercials and uh i might just watch the super bowl for that there's a bunch of there's a bunch of predictions about like all right which nft projects are making it into the super bowl are board apes going to make an appearance what will happen to prices what's budweiser going to do yeah right like yeah people are playing that game right now yeah uh it's going to be fun guys uh a lot of things but at first we want to tell you about a couple of announcements the first is this david it's been a long time since we talked about bankless premium membership and we appreciate our friend uh hardison underscore cj on twitter

tweeting this out how i felt listening to bankless hq premium feed episode top secret you know the bankless premium episode david we're putting some awesome content out on that and i think if you are not a premium subscriber you don't have access to that but it's a whole podcast that you don't get it's a whole extra bankless podcast that comes at you in addition to um podcasts come early at you on the premium feed there's a lot of other benefits to you becoming a subscriber anything else you want to mention yeah the in parentheses coffee mug with the semiconductor for the win

at trustless date what the hell does that mean well bankless premium subscribers definitely know uh and so the debrief episodes are where ryan and i just like reflect on the episode that we just recorded prior and just kind of uh capture and and connect that to uh other existing knowledge that we think that we have about the rest of the crypto space so uh some alpha question mark yeah also you get a nice um premium badge nft badge for 2022 when you sign up and you can unlock things unlocks things maybe things that are

coming in the future you get yield guides premium access lots of good benefits there uh also david we should talk a bit about our friends at xerion this is not my wallet but it's a wallet i would like to have and what's cool about xerion of course is this gives you one-click access to your entire d5 portfolio across chains so it's not no longer just about ethereum mainnet now we're looking at some layer two chains here so we're looking at optimism we're looking at avalanche uh they're adding more networks over time so i think they

have seven already listed and a major theme for this year has been the great migration from l1 ethereum to uh layer two and you can bridge within xerion as well take a look at these bridging functions david bridgeore there are so many different bridges and bridges out there there are so many different destinations out there xerion supports seven different chains but all inside of just one xerion application in addition to all the bridges that can get you onto those different chains so uh sometimes i get caught up in choice

paralysis like do i use hop do i use connects like do i use where do i go like and so xerion can just make that super simple for you all in one place and that is the power of xerion uh blockchains belong in the back uh and xerion puts itself in the front so you don't have to deal with the blockchain just using zirion nft viewer too it's really it's all your your assets so connect your wallet start using xerion hop across some bridges we'll include a link to the show notes so you can do that all right david mark it's time man bitcoin

baby we're happy about it we're happy about it yeah bitcoin started the week at 36 600 which was also the low and it is currently clocking in at 45 000 45250 which is also the high so start of the week at the low end of the week at the high it's the best possible outcome uh we're real happy about it so uh up 20 this week ryan how about ether what's ether doing yeah ether start started the week at 20 2 600 currently at

two hundred and twelve dollars uh the high is three thousand two hundred and eighty so almost currently at its high uh up also roughly twenty percent on the week almost as much as bitcoin bitcoin did win the race this week i think bitcoin is up like one to two percent more than e3 this week that's pretty impressive and i i feel like it's getting rid of those uh bull market blues i feel like the market is blue yeah bear market blues uh i feel like the market is moving squarely into like uh neutral territory like we're not sure what comes next but we're no longer as bearish it's hard to be bearish eath above 3k in my opinion congrats the

three-week bear market is oh i'm not saying it didn't say you can't say it it's over this weekend next week we'll see what next week brings but um yeah it's it's you know definitely looking good on this pop back up how about the bitcoin ratio how's that looking down just a little bit down i think it was at .074 last week it's currently at point zero seven one so down a little bit um no not too much action there bed index as usual is tracking all of these assets so this is what it looks like on the one week it is up about 7.3 percent this is of course

bitcoin ether and d5 also if you want to get in some more risky i i guess a bit higher risk and reward defy assets we have the uh bankless defy innovation index this is the gmi token gonna make it make it it's an index of all of these like defy 2.0 protocols and in addition to uh the dpi this is a pretty good tracker of what d5 is up to and it doesn't look great on the month of course like anything looks pretty good on the week though this week it beat bed on the week yeah

so newer defy tokens more experimental defy tokens more on the frontier defy tokens uh more more upside if things go well more downside if they don't but uh this week it beat out the ben index so the bankless gmi index uh which has a much the bet index only has three assets right but i guess dpi has many many many the bank this uh gmi index uh has a much larger number of assets in it um things like tokamak uh things like ohm uh a bunch of the newer like d5 2.0 type

stuff and so if that is your cup of tea go check that out at the index co-op application uh another thing to check out is the growth stats on maker they just passed 10 billion die yeah yeah it's pretty impressive you don't have your sound board so you can't click the applause manually that's 10 billion die that's 10 billion dollars of non-black listable stable coins which is really important point die does not have a blacklist and there's 10 billion of them out there um i would like although although i will say you know the usdc or

anything that's centralized that is backings in the collateral of maker could be blacklisted but that's uh used to be a higher percentage now it's lower right and it's um you know it can be adjusted up or down based on based on that but that's what that's what the maker contracts do it takes risk into its contracts and it outputs uh this unblacklistable stablecoin so it's supposed to be a risk filter uh using the strength of the mkr market cap and also kind of um uh security through like mingling right like uh and so it i i think it's a fair

take to say that like even though that usdc inside of maker vaults is blacklistable uh the die on the other side of that is still like has strong security properties i agree with that take too and i do think that blacklisting is yet another risk that maker sort of tries to abstract and uh you know take away from from dye but what's cool about this is 10 billion is a big number david i remember one of our early bankless podcast episodes maybe the first 10 the first dozen anyway with mariano conti this is back in 2020 2020 i think

and uh he gave out a number that blew people's minds at the time blew our minds at the time uh dye was like under 100 million if i'm remembering correctly and he gave this crazy prediction that by the end of 2020 dye might hit 10 billion dollars uh sorry not 10 billion one billion dollars and now here we are at 10 billion it's pretty crazy the market cap the supply of diet at that time was roughly 50 million dollars yeah so asking for a one billion supply was insane now we're

at ten billion dollars it was it was in time and maker mkr is one of the few applications that's actually generating significant on-chain revenue via their product and that is what stands out about maker dow versus any other thing that's in defy and for some reason the mkr prices does not reflect it it's the turtleman it's it's slow and steady it's like maternal atmt david it's just like you got to love it it's just cranking up on a yearly basis and actually we say it's slow but this is pretty fast for all other traditional markets to go from 50 million to 10 billion in like the

course of two years um let's talk about something else this is why this role is going to last two hours inflation is searching one 7.5 percent this is annualized this is inflation on u.s dollars so inflation is continuing to heat up crank up even more than expected highest since 1982 the numbers just came out i saw this meme i thought it was kind of funny kind of sad what are you going to do you just got to laugh at it this is me watching 200 worth of groceries in 2022

and it's like this picture of like a tiny sink a miniature miniature fruit a tiny sink and a strainer um yeah what's going on i i mean i'm with regards to how this impacts crypto i'm conflicted because like more inflation drives people into harder assets like crypto assets but also more inflation means the federal reserve is going to be more aggressive against fighting that which means they're fighting our assets so like i'm conflicted yeah i um i think ultimately this is part of the same story which is um you know crypto's gonna do quite fine over

time relative to to fiat but um yeah who knows what i'll do in the show in the short run i wonder if inflation is going away sometime this year we're going to drop remember our jim bianco episode he sort of predicted that it will get higher it will also peak and then by the end of the year we might see something like three to four percent right as sort of the new normal for inflation moving forward it's hard to know who knows yeah we will figure it out guys crypto is bullish regardless of inflation yeah that that remains true

and uh we'll talk about a bit more reasons why it is bullish when we get to releases before we do we want to thank the sponsors that made this episode possible the gemini exchange has been my exchange of choice ever since i got into crypto i used gemiini to both buy the dips and also manage my regular automatic monthly purchases of my preferred crypto asset on gemini you'll find over 50 different cryptos including many of the top defy and metaverse tokens like wi-fi and axionfinity using gemini earn you can earn yield on your various cryptos including eight percent on the g usd stablecoin gemini is

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any token at the current market price no human counterparties or centralized intermediaries just autonomous code on ethereum input the token you want to sell and receive the token you want to buy the uniswap grants program is accepting applications for grants do you have something of value that you think you want to contribute to the uniswap ecosystem no matter how big or small your idea is you can apply it for a unique grant at uniswap grants.org and help steer uniswap in the direction that you think it should go thank you uniswap for sponsoring bankless the brave browser is the user

first browser for the web3 internet with over 50 million monthly active users control your digital footprint with built-in privacy and ad blocking inside the brave browser you'll find the brave wallet the first secure crypto wallet built natively inside of a web3 crypto browser web3 is freedom from big tech and wall street more control and better privacy but there's a weak point in web 3 your crypto wallet the brave wall is different brave wall is built natively inside the brave browser no extension required which gives the brave wallet an extra level of security versus other wallets with the brave wallet you can

buy store send and swap your crypto assets and you can even manage your nfts and connect to other wallets and defy apps all from the security of the best privacy browser on the market whether you're new to crypto or a season pro it's time to switch to the brave wallet download brave at brave.com banklist and click the wallet icon to get started all right guys we are back with the hot releases of the week let's start here this uh something is blooming says the lens protocol i think this is ave's social network that's what lens protocol is what's going on here david

yeah this is the uh hotly discussed uh social web 3 social media platform being developed by some of the the team behind ave so everyone's kind of hungry for details and we're starting to get some of those details out right now i think the high level tldr before we know too much is that we are taking a social graph as in like imagine like all of your connections on twitter or facebook that's a social graph like a social web all of your connections and then lens protocol is working on building that on chain as part of like the trustless verifiable immutable properties that

blockchains give it and so that we can have um a social graph like facebook but that's open rather than closed because facebook doesn't let you you know export your social graph this because it's on chain you can export your social graph and that makes it like you know composable other people can build on this uh is the idea and so this is an on-chain social graph that's being deployed onto polygon so polygon is the network of choice um i think we're all kind of waiting to see what happens next and how this rollout plan uh occurs um we are in conversation with christina from ave who is checking with compliance

as to whether she can come talk about this on a bankless panel about uh social media and digital identity in the web 3 era so hopefully stay tuned for that because it's going to be a really hot panel yeah this is a bit more of a protocol than i thought it would be david there's no app yet but i guess that's what you have to build out first is sort of the protocol the primitives for the social graph and then you can build the apps on top of it uh david you're something from celesta so their data availability bridge has launched i believe and celeste is like a data availability layer how would

you explain what a data availability layer is david yeah so when you make a transaction on a blockchain it gets embedded into a block and that is you putting your data into a blockchain and all blockchains that have a history help store their history on their data availability layer now we talk about like the modular concept of blockchains and how you can take apart each different module or component and they're the data availability layer of blockchain is just one component that's separate from consensus how consensus comes how things come to consensus is

different about what we are coming to consensus about and data availability is what we are coming to consensus about or what we've already come to consensus about and now are now storing uh and so this is an innovation in the storage aspect of what has already been uh having consensus had about yes well so okay so here here's how i think of it so we we've got three layers in the modular block chain right you have consensus that's what's true you have data availability that's what's happened and then you have execution that's what's

happening right now and so the modular chain the like the modular blockchain design splits these three pieces up into separate parts and so ethereum mainnet is really going to be the uh the consensus layer primarily and then later when we have data shards it will turn into a data availability layer as well so that means there's opportunity to outsource some of the transactions the data availability transactions which is basically the history the blockchain history if you will to somewhere else and celesta thinks it can be somewhere

else polygon also has a solution to this like immutable is offloading its data um somewhere else right now not on ethereum main chain so it's cool to see this uh the space emerge and it fits right into the modular chain thesis that we have if you have no idea what we're talking about right now go listen to the modular blockchain podcast that we put out a few months ago and that will get you up to speed really important concept i'm speaking of polygon david polygon edge it's a new product from polygon they it

allows anyone to spin up their own evm chain in minutes so this is like sidechain as a service i think that's how that's how i understand it has layer 2 support more consensus modules trustless bridging that sort of thing uh and you know uh founder of polygon says multi-chain ethereum is coming like it feels like it's here what's your take on this yeah well we've seen how lucrative lucrative it is to take the geth geth codebase and fork it and spin up your own l1 oh you said it not me ryan um but yes

avalanche uh polygon edge is turning this into a service like yeah like let's allow anyone who wants to spin up an evm chain uh enable them to do that uh and then it's just a super awesome uh way to capture business in mindshare uh if this becomes a valuable service um and maybe this is a litmus test as to like do actually people want to spin up their own side chains or do they want to just issue their own l1 tokens like what does the market really want um we'll find out yeah i do think that side chains are are going to become somewhat of a commodity if you could just like

spin them up and pump them out and print them like this as polygon is doing but it definitely builds the network effect for um for the evm things like this also speaking of network effects looks like some of the layer ones are getting it ftx major exchange that you know of course it now supports arbitrum on mainnet so i think this is withdrawals and deposits to and from arbitram the way binance supported it about a month ago what's weird here is like uh when coinbase where's coinbase yeah coinbase coming in third at least uh i mean ftx

saw the demand out of uh using binance to get ether on to arbitrarily so they're like even ftx which isn't inherently ethereum aligned is like oh we want some of that that value too uh so they're doing it win coinbase when coinbase brian don't make me text you or actually we should probably should text them yeah we should we should text them let's let's work on that uh raises on the raises section uh speaking polygon we were earlier they just raised 450 million dollars from sequoia capital india

softbank and tiger global pretty massive raise for this layer two which is really what polygon is it has side chains but it has a suite of layer two uh solutions as well and it just goes to show you alternative layer ones aren't the only ones building out war chests right this is gonna be very much uh a fight for the execution layer of crypto and polygon is uh raising a war chest in order to engage in that fight yeah we all know that we're moving into a multi-chain

world whether it's a multi-layer one world or a multi-layer two world and polygon kind of has real estate in both sides uh and so it's kind of like a bet on a manychain world and we know that we can't have one dominant single block chain like in order to scale this ecosystem we need to have many chains guess who has many chains polygon polygons got a lot of changes we got chains of every flavor l2 chains l1 chains side chains any chain you want is polygon uh let's talk about this phrase too alchemy 200 million dollar raise at

a 10.2 trillion billion dollar valuation crazy 10.2 billion dollars if you guys don't know what alchemy is it's probably because it it sits behind the scenes anytime you use like metamask or many of the apps today there's there's that historical data that your defy apps need to call and likely they're calling something like alchemy alchemy powers a ton of this it's sort of like the aws for blockchain data so we're not talking about kind of the consensus layer running eth nodes so much as all of the

indexing that needs to happen to make the front ends of d5 applications work like a ton of that is powered by alchemy so that's how you justify that 10.2 billion dollar valuation just the the massive growth of defy and blockchain indexing um i do think they have plans in the future to decentralize a little bit but they are they are centralized right now um so think of this as like blockchain aws in my opinion any thoughts on that nope that's about right jobs time david you ready man you're not

your regular place i don't know if you can get up and dance but i'm sitting down dancing today he's sitting down celebrating guys this is your reminder we do this weekly because it's important 2022 could be the year you get a job in crypto because we got jobs don't we lots of jobs binders full of jobs we've got tons of jobs a senior product engineer at moment ranks a community manager as a contractor dydx governance growth leader dydx business operations and finance associate dydx

marketing associate dydx lots of different skill sets here accountant smart d5 web 3 engineer at goldfinch a senior go rust engineer at syndica smart contract tech lead at star x as well i could go on but there's this new feature on the bankless job boards i should mention as well we are building a talent collective so this is a little bit different this is where the talent gets to submit their profile and then the web three companies get a bit yeah it's like so think of like linkedin

your own web3 linkedin profile and uh employers come to you so maybe you want to play a little hard to get or just put the feelers out there right submit your profile to the talent section and uh you know web3 job finders web three uh higher talent hires talent acquisition will come find you that's the way this network works let me tell you in this day and age in the crypto industry uh uh the market favors talent more than does jobs there are more jobs

than there are talent they will find you they will find you yeah put yourself out there if you are passively seeking it's a good idea and of course uh if you're an employer you know we got some we got some talented folks in the bankless community that you can connect with uh all right david let's move to news talented folks huh let's get into this we have some talented folks we have some not so talented folks as well in crypto to be fair yeah who are they actually talented or not is something that we're gonna have to figure out all right we have to start

with a big headline okay so for context in 2016 a very significant exchange called bitfinex got uh atta hacked for what was then i think like 72 million dollars worth of bitcoin uh over a hundred thousand bitcoins i think it was like 116 000 bitcoins so remember 21 21 million supply a hundred and sixteen thousand of those bitcoins was hacked out of the bitfinex exchange michael saylor levels of bitcoin yes yes like yes that's exactly right i think that's exactly right around the right

number imagine all of michael saylor's bitcoins getting hacked from this exchange a very big deal this happened before my time in crypto um uh but it just caused a bunch of drama and hubbub and no one knows what happened to the bitcoins um turns out uh the department of justice found the bitcoins uh in the hands of two individuals uh isla lichtenstein 34 and his wife heather morgan uh both citizens uh residents of new york were arrested and charged with money laundering of the cryptocurrency

stolen from bitfinex in 2016. the department of justice says that it has recovered a whopping 3.6 billion dollars worth of the the bitcoin i think they recovered something like 90 000 96 000 of the 116 000 so they not not all of it but like significantly most of it so this is a big bust and a good recovery and so you know when i first read this i was i was picturing some like you know elite crypto hackers out there some shadowy super coders right right not only did they heist living

off of the united states somewhere else yeah no no you know they didn't only heist billions of dollars worth of krypto but they also hit it for like almost a decade yeah okay so like what are we expecting there and uh yeah so i was expecting some sort of shadowy supercoder to emerge but instead we got something else david what did we get we got these ridiculous insane people who like the the the woman wants to be a rapper and she's terrible

struggling influencer significantly struggle rightfully so struggling influencer uh who is like acting like an actual actual lunatic on tick tock and instagram making very just ridiculous raps uh the behavior of these two people who are very very public is insane it's insane who they are they are not right in the head and like i'm trying to like think that it's a show but i don't think it's a show i think it's real um here's a video of her eating these

fluffy pancakes and commentating on it uh we'll put the links in the show notes about how crazy some of this stuff is it's just fun it's just good entertainment you know it's one of those things that's like i i watch these videos i'm like why do i even care about this world look at this what the hell what's going on there's okay for the listeners this is a this is the the the lady the woman hacker uh drinking heather uh drinking a bottle of something with her toe with her feet so like bottle in her feet drinking it going straight to the mouth

this was this was a couple oh my god it's absolutely billionaires are getting weird david that's what's going like this person's a billionaire hacker right uh you know next slide what is this yeah so this is a terrorist we've had him on the podcast he used to host these like kind of web 3 style talks dinners every now and then uh and he hosted heather morgan once uh once at one of these talks in 2019 uh and the uh the the talk that heather gave was how to socially social engineer your way into anything and so she gave like these i'd say she's

qualified yeah clearly she took her own advice i mean this is three years after she and her husband hacked bitfinex right allegedly hacked big bitfinex uh and so like some of the pictures that came out from this were absolutely insane did you have that that tweet uh pulled up oh there's more than this uh yeah scroll scroll down there's a few pictures yeah here we go here we go how to socially engineer your way into everything from proving cold email tactics to event crashing and infiltrating black markets around the world there's something for everyone let's go to the next photo yeah so like

um uh actually we'll go to the next one and go to the next one uh okay useful objects for br for event crashing badges press passes professional camera a notebook money for tipping if you needed to buy people your way out of it a black shirt because you look like security layered outfits and accessories this is so shady we actually we actually don't know how we are still discovering how they actually got the bitfinex bitcoins we don't know that yet uh so that is i mean this might be the answer right this might be that they probably socially

engineered their way into like 3.6 billion dollars worth of bitcoin right and so okay it's just tldr and social engineering it's not like hackerman where you're tapping on your keyboard exploiting some weakness in big and bitfinex is like walls uh it's it's doing something like calling an employee pretending you're like an exec and you get them to give you some information and so it's a social it's social like you are talking to someone and they just give you something it's way easier and probably like a greater you know weakness in most of our systems and structures uh yeah some places i've

infiltrated wow imagine documenting your crimes like this david mm-hmm just for the clout you know you just gotta crazy you gotta make sure everyone knows um this is a tweet from uh alistair uh imagine being a hacker or money launderer and keeping the unencrypted private keys to 3.5 billion dollars of bitcoin in an online account linked to your name mind blown are you telling me that this is how this is where the fbi

found it it wasn't like on a ledger it's not on some like you know private keys that they manage you know encrypted somewhere this is on a um an unencrypted online account link so it was encrypted but apparently very poorly so here's from from the doj report they say after the execution of court authorized search warrants of online accounts controlled by liechtenstein and morgan special agents obtain access to files within an online account controlled by lichtenstein those

files contained the private keys required to access the digital wallets that directly received the the funds stolen from bitfinex and allowed the special agents to lawfully seize and recover more than 94 000 bitcoins that had been stolen covered bitcoins uh valued at 3.6 billion uh so apparently it actually was encrypted there's another report and uh with the link in the show notes will will provide more details but apparently it's just encrypted poorly uh okay there is good and bad encryption out there and apparently like so they stored it online with poor encryption um under their name

under their own names okay but again how we actually know these people attacked bitfinex we don't know we just know that they had the bitcoins and they were like you know money laundering it why did it take the fbi so long to find this i don't know i don't know like we're gonna have to this is gonna be an ongoing like report we're gonna we're gonna be following this one for a while i mean i i think the other big question is uh okay 3.6 billion dollars uh what happens now the fbi owns it this is they've seen stuff in the past and they've like in in you know previous